North Carolina Down Payment Assistance Systems

Payments Gateway - The North Carolina Housing Finance Agency has two great programs for First Time Home Buyers. These programs will be the Down Payment Assistance Program and also the Mortgage Credit Certificate.

You purchase a property between January 1, 2009 and December 1, 2009 and if you meet the requirements for one of the plans, you can even qualify for the $8,000 tax credit only enacted into law.

First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a home in the previous three years. Here is exactly the same qualifying definition for the $8,000 tax credit.

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability depending on a portion of the mortgage interest that you pay.

Should you are eligible for the MCC, it is possible to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. It is possible to save as much as $2,000 on your taxes.

You'll be able to combine this with the $8,000 tax credit if you do qualify for 2009, for the MCC. This would reduce a purchaser's tax liability by $10,000.

Household income means the “gross income of the mortgagor and every other individual expected to reside in the residence who's 18 years of age or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are listed below.

MCC Income Limitations 1 Individual $61,500 2 Individuals $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Price Limits New Home $220,000 Existing Home $210,000

The purchaser only needs to pay and the load would pay up to .

This plan has stricter income limits than the MCC plan summarized above. Like the MCC application, it can be utilized along with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nonetheless, can not be used together with the MCC. That is an either or situation.

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing Dwelling $210,000